China and Iceland started the sixth round of talks for their free trade agreement in Beijing on Tuesday, China's Ministry of Commerce said in a statement on its website.

The three-day talks will cover issues related to goods and services trade, investment, and other areas.

Bilateral trade rose 21.1 percent year-on-year in 2012 to $180 million. Chinese exports rose 24.6 percent year-on-year to $95.39 million, while Chinese imports increased 17.7 percent year-on-year to $88.96 million.

China and Iceland established diplomatic relations in 1971 and the economic cooperation between the two countries has developed smoothly since then, the statement said.